Demand hit CP still among most expensive office markets

DELHI: Despite weakening demand for office space Connaught Place (CP) remains the fifth most expensive office market in the world.

In property consultant CBRE’s semi-annual Prime Office Occupancy Costs survey, CP has retained its earlier ranking in the list of the world’s 50 most expensive office markets. The latest survey provides data on office rents and occupancy costs as of March 2013 across 133 countries.

“Though demand for office space has reduced, occupancy costs remain high, especially in Connaught Place, due to limited supply in the near future,” said Anshuman Magazine, chairman and managing director, CBRE.

And the gap in office real-estate occupancy cost between central business districts (CBDs) such as Connaught Place and suburbs such as Gurgaon (ranked 72nd) stays wide.

In Mumbai the occupancy costs in Nariman Point, the country’s first planned CBD, have reduced further. In the CBRE survey, Nariman Point dropped to 26th position at $90 per sq ft per annum. In December 2012, it had ranked 25th.

CBRE analysts said the Mumbai CBD — including the micro markets of Nariman Point, Fort and Cuffe Parade — had seen office space absorption of only 8,000 to 10,000 sq ft during the quarter. Office rental values in these micro markets declined 3-4% sequentially in January-March, they said.

In the past few years, Nariman Point has lost some of its sheen and has seen rising vacancy levels since many companies have chosen to move offices to locations such as BKC, Lower Parel and Andheri. Rentals in the CBD have also fallen from over Rs 300 per sq ft a month in early 2011 to about Rs 250 now.

Transaction activity was upbeat in BKC, with around 0.18 million sq ft of Grade A office space absorbed during the quarter. “The existing vacancy pressures and further supply addition (in BKC) during the current quarter have led to a decline in rental value by 3-4% quarter-on-quarter,” the analysts said.

Latest Realty News

DELHI: A common saying goes, to know “stress”, organize a person’s marriage or endeavor to build a house. Consider the various factors which affect the decision on the purchase or building of a house, they range from vastu, legal documentation, anticipated appreciation in value and maybe even the whims and fancies of the relatives. Clearly, factors which may cost a common man, seeking to obtain a roof over his head, many a nights sleep. Well, thanks to the Finance Act, 2013, the stress has been

DELHI: Terming the home prices as highly inflated in the country, including in smaller cities, industry leader Deepak Parekh on June 21 asked builders to focus on affordable housing, rather than luxury homes, and said it is a dangerous thing to lend aggressively to developers.

DELHI: India has its own unique and integral complexities and business is not an exception to it. Corporations strive for increased efficiency and productivity amidst these complexities. Real estate is an integral ingredient in the formation and growth of all businesses and steadily maturing into a big business itself.

MUMBAI: A common saying goes, to know "stress", organize a person's marriage or endeavor to build a house. Consider the various factors which affect the decision on the purchase or building of a house, they range from vastu, legal documentation, anticipated appreciation in value and maybe even the whims and fancies of the relatives. Clearly, factors which may cost a common man, seeking to obtain a roof over his head, many a nights sleep. Well, thanks to the Finance Act, 2013, the stress has been

DELHI:A slowdown in the real estate sector can spell opportunity for the prepared. Delhi-based publishers, Umraopati Ray, 30, and his wife PriyankaSaxena, also 30, own an apartment at PaschimVihar. As the slowdown in the National Capital Region (NCR) intensified, the young couple went hunting for good deals.

DELHI: Landowners in Greater Noida will be hit hard if the Greater Noida Industrial Development Authority (GNIDA) changes its building bylaws as they will either need to build structures on vacant plots or sell them to someone else who will to avoid the plots being confiscated.